Under the Turkish legislation an investment fund is a property used in order to manage various instruments accepted by the capital markets. Among these instruments are gold, real estate and other assets, which is why Turkey has a large variety of investment funds. The main laws governing investment funds and their establishment in Turkey are:
Our company registration representatives in Turkey can offer additional information on the investment funds legislation.
As seen above, the Turkish legislation accommodates various types of investment funds, among which the largest ones are Turkish and foreign funds. Turkish investment funds are divided into:
All these type of funds are grouped as mutual funds.
The Turkish legislation also provides for pension and exchange traded funds and real estate investment funds separately, as mentioned above. There is also the venture capital type of investment funds.
No matter the type of fund selected, the setup and registration process is the same. First of all, the investor must obtain the approval of the Capital Markets Board (CMB) in Turkey. However, the fund must be set up by a portfolio management company which will be established as a Turkish public company.
After the company is registered with the Turkish Companies Register, it will prepare an agreement with a depositary acknowledged by the CMB. The depositary will keep the fund’s assets, as prescribed by the law. The investor must also draft a set of documents containing the internal regulations of the investment fund, which will also be submitted for approval with the CMB. The internal regulations must also be filed with the Trade Register.
For assistance in preparing the documents related to opening an investment fund in Turkey, do not hesitate to contact our company incorporation consultants.